Did you know poor cashflow can destroy your business?
The simplest way to avoid cashflow challenges is to ensure that you collect more money from the people who owe you and faster than you have to pay the ones you owe. It is important to note that the people you owe include your employees, landlord, suppliers, etc.. This also means keeping some of the profit you make will to save your business from cashflow challenges. This is also why sometimes it is not a good idea to pay for assets upfront as this will lock your money in those assets. So you want to free up your cash so that even when you secure a large order you are able to meet its financial obligations. See Sophie’s case in Smart Mampara.